The Republican. [volume] (Oakland, Md.) 1877-current, 1887-02-19
THE BANK OF FRANCE.
An Index Of the Prosperity of the
Republic.
Something About Its History and Present
Manageracnt-Over 800, 100000
Standing to Its Credit-Its
Paper ir Circulation and
Metallic Basis. =; e

Next to the Bank of England, the
Bank of France is the largest and most
important of all the other banks in
Europe. Occupying very nearly the
same position in France as the Bank of
England does in this county, it is in
many respects similar, and performs for
the country the same kind of duties.
The public moneys are deposited with
the Bank of France; it alone has the
sole right of issuing notes for that
country. (This is what Sir Robert Peel
would have attached to the privileges
of the Bank of England, if he had been
able; but usage and vested interests
were too powerfully Its capital is
possessed by a proprietary whose liza
bilities are of similar nature to those
of any other banking institution. 1t
opens accounts with properly introduced
persons, and keeps in its Golfers the
metallic reserves.
Having mentioned these analogies be-
tween these two great banks, there are
points where their conduct DIVORCES.
The transactions of the Bank of En-
gland are on larger scale, owing to
the larger mercantile operations in this
country. The commercial habits of the
French are plainly indicated in the
class of bill business which their chief
bank undertakes. During the whole of
last year it discounted no fewer than
1880, S39 bills under four pounds, most
of them payable at private addresses.
1t is an unusual thing for an English
banker to take a bill under ten pounds,
and he will require satisfactory reasons
for discounting bills payable at private
addresses. 1t is presumed here that in
such case the acceptor can not be a
substantial man, OF he would have
banker
Another point of divergence, again,
is in the government of the bank, where
in the French have shown their belief in
the efficiency and effectiveness of gov
eminent control. Our own government
can not in any way interfere with the
operations of the Bank of England, ex-
cept in respect of its note issue. The
French bank is presided over by a gov
ernor, appointed by the government,
who also appoints the two deputy
governors. The three highest offices are
thus held by government men; and the
office Of the governor is held for life. 1t
is his duty to see that the obligations
i.11Ioca1 tho In,,lr b.-+ I,
ment are in all respects carried out, and
to act as the connecting link between it
and the government. In addition to the
governor and two deputy -governors, the
general assembly, consisting of two
hundred OF the largest shareholders,
elect the general council, whichis made
up of fifteen regents and three censors.
The manufacturing and trading inter-
osts are supposed to be duly represented
in the council, for five of the regents
must be chosen from each of these
bodies. There isyet another committee
of twelve persons, who must be share
holders carrying on business in Paris,
appointed by the censors. This COM
mittee has the responsibility of examin-
ing and passing all the bills taken for
discount.
The bank was established in 1903 by
the Emperor Napoleon Bonaparte. Its
constitution has been slightly modified
from time to time, as circumstances
have required. 1t has been successfully
and prudently managed, though there
have been times when its existence has
been threatened. In 1S4S, during the
Revolution, it made large advances to
the government and to the city of Paris,
which, combined with severe drain
on its gold, strained its resources to so
great an extent that it was compelled
to suspend specie payments. To lessen
the evil of this measure and limit the
Inconvenience arising therefrom, its
notes were made and have continued to
be legal tender.
The reports annually issued by the
council of this bank to the shareholders
are full Of interesting and instructive
details, whereby comparison with those
of other years, and the progress of the
business, can be followed, and the pub
lie support estimated. These reports
present curious study to bankers and
economists in this country, for they
afford glimpse of the nature of the
banking business carried on in France
and of the commercial habits of the
French people. To the statistican they
form Il repertory of figures from which
he can construct tables of the trading
transactions of the country, always i'm
important and valuable in history,
From the report before US for the yeal